Work

Unemployment Shocks and Income Distribution: How did the Nordic Countries Fare during their Crises?

Year: 2000

Type: article

Abstract: We study the inequality of disposable income in Denmark, Finland, Norway and Sweden during the late 1980s and early 1990s when unemployment rose dramatically in all four countries. A standard measure of inequality — the Gini coefficient – was surprisingly stable in all countries during this period. By decomposing the Gini into income components, we test hypotheses about the reasons for this stable income distribution. Our most straightforward hypothesis, that rising unemployment benefits counteracted the impact of more unequally distributed earnings, receives only limited support. More complex mechanisms seem to have been at work. JEL classification: D30; D31; J60

Source: Scandinavian Journal of Economics

DOI: 10.1111/1467-9442.00185

Authors: Rolf Aaberge, Tom Wennemo, Anders Bjorklund, Markus Jantti, Peder J. Pedersen, Nina Smith

Institutions: Statistics Norway, Stockholm University, Åbo Akademi University, Aarhus University

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, No poverty

Open Access status: green

OpenAlex ID: W1985954450